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Transparency, the Blog

First, lets talk about definitions. Legal transparency isn't a matter of perception. It is what it is and should be followed to the letter and the spirit of the law.

Transparency in sales is relative. The LAST thing dealers want is pure transparency. Absolute transparency leads to an "efficient market," which leads to disintermediation. Dealers need to become familiar with these economic terms, especially the part about disintermediation. That means "cut out the middle man." That's YOU Mr. Dealer. Is that what you want? How many Dealers think Employees, let along Consumers, have a right to all of the information?

In an efficient market, the product becomes a commodity. Both parties, Buyers and Sellers have equal information. There is no "middle man" profit. Consumers buy directly from the Manufacturer. All the franchise laws in the world can't save you after you've gone BK.

The fact is, Consumers don't know what they want. We need $3K front and back per transaction. If someone gets a $2K deal, we need to make $4K on the next guy. That's how it works but ONLY if you want to survive and receive ROI for your investment. Recall when you had to sign personally on that Cap Loan and/or Floor Plan? You want to be forced to grant transparency to those who took no risk, made no investment, and will whine over whatever you do. You want to try to please everyone? Imagine a world in which everyone pays the same. Imagine the jail time if you colluded with your fellow Dealers. Once the efficient market gets rid of you, the OEMs are free to fix pricing where they receive the ROI they want.

Certainly what the world needs is more vendors helping us become more transparent. As its always been a good deal is a state of mind. That translates to "perception of transparency."